Frequently Asked Questions
Consumer Frequently Asked Questions
Age is a factor in the qualifying child test, but a qualifying relative who is not a child may be any age.
How much does an unmarried dependent student have to make before he or she must file an income tax return?
You must file a tax return if you are under 65 years old and your earned and/or unearned income exceeds $9,350.
If I claim my daughter as a dependent because she is a full-time college student, can she claim herself as a dependent when she files her return?
In certain circumstances, you do not need to claim the child as a dependent to qualify for head-of-household filing status, such as when the qualifying child is unmarried and is your child, grandchild, stepchild or adopted child.
Many mathematical errors are caught during processing of your return. But if you failed to report all your income or claim a credit for which you were eligible, you should file an amended or corrected return. To claim a refund, you must file a new return within three years of the date you filed the return you are changing.
If you are due a refund, you are permitted to split the refund any way you want and direct deposit the funds in up to three different accounts with U.S. financial institutions.
You must make estimated tax payments for the current tax year if you expect to owe at least $1,000 in taxes after subtracting your withholding and credits or if you expect your withholding and credits to be less than the smaller of two sums – 90 percent of the tax on your current year’s tax return or 100 percent of the tax shown on your prior year’s 12-month return.
Business Frequently Asked Questions
The 1099–NEC is a new form specifically for reporting non–employee compensation-currently defined as payments to individuals not on payroll on a contract basis to complete a project or assignment. This would include all independent contractors, gig workers, or self–employed individuals who previously had their payments reported in box 7 of a 1099–MISC form. 1099-NEC vs 1099-MISC The 1099–NEC is now used to report independent contractor income. But the 1099–MISC form is still around, it‘s just used to report miscellaneous income such as rent or payments to an attorney. Although the 1099-MISC is still in use, contractor payments made in 2020 and beyond will be reported on the new form 1099-NEC.